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Must Know Facts About Military Retirement Pay

Military Retirement Pay

Military retirement pay includes a pension plan which begins on the day of retirement from the military, regardless of the age of the individual. In fact, individuals can begin collecting from the pension at age thirty seven. Retired military also receive a cost of living adjustment to the pension plan payments each year.

Pensions can vary in payments and the amount of an individuals payments can be determined by looking at the Military retirement chart. The rank of the individual, as well as deployment and their speciality in the military, may influence the amount of pay. The Military retirement chart is not always definitive and the amount may differ slightly from that which is listed.

There have been some recent changes to military retirement pay, including the elimination of the seventy five percent cap on the amount of payments received. The amount of payments is calculated according to the years of service and those that retire now, receive payments based on a higher percentage of years served. Whereas in the past, payments were calculated at seventy five percent of service. The cap has only been lifted for those that had more than thirty years of service and retired after 2006.

Retired military members are often aware of the amount of payments they will receive, based on their chosen time of retirement. There can be changes to that amount, including a possible yearly cost of living increase.

NEXT: Defined Benefit Plans

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